Have you ever seen one of those illegal cannabis vending machines, often tucked away in a seemingly random corner or alleyway but open 24/7? You probably haven’t, but if you did, you probably didn’t want to stop and take part in the transaction available. However, what if we told you had a man from Detroit made an astonishing $2,000 per day solely by running these machines? We know it sounds too good to be true – after all, illegal activities usually don’t pay off (like in this story as well). But there are many valuable lessons that can be gleaned from this case and applied to business practices for dispensaries owners and operators alike. Like… do it legally!
Join us on this journey to see how you can use tactics compliantly and legally to create growth for your dispensary.
Introducing the Detroit Man Making $2,000 a Day Through Illegal Cannabis Vending Machine
Meet the man who has made the news with his approach to illegal cannabis distribution (and firearms). Based in Detroit, this man has been making up to $2,000 daily by selling cannabis products through a vending machine illegally attached to his house. His business is illegal, but here are some of the lessons we can learn.
What we can learn about what experience the consumer wants
As businesses strive to meet the needs of consumers, it’s essential to understand what experience they desire.
1) The consumer wants a frictionless experience in purchasing cannabis.
A frictionless experience that provides ease of access is a top priority. Consumers want to effortlessly obtain the products or services they need without encountering obstacles or delays. There are enough challenges with ID checks, check-in, etc., etc. even to get a customer past check-in. It’s essential to keep your customers in mind with them going through your processes.
This man didn’t use a loyalty program or other traditional marketing tactics—just fast, efficient, predictable experiences for his customers. There is a way to do it all, it needs to be a good experience for your customers!
2) The educated consumer knows what they want.
Additionally, predictability is critical to maintaining customer satisfaction. Consumers want products and services that consistently delivering the expected effect with minimal variation. By considering these factors, businesses can ensure they are meeting the needs of their audience and providing a positive experience that promotes loyalty and growth.
3) The consumer wants it to be in an accessible location.
Location is everything, and it needs to be in an easy place to purchase. While malls, airports, and other mainstream areas are off-limits, it’s vital to have an optimal location. While traditionally, dispensaries look for certain location specifications, with ACE or an automated dispensing machine, it’s now possible to locate a high foot traffic area with little space and use ACE to sell A LOT of product even inside a dispensary.
The legal implications of selling cannabis through vending machines
As the legalization of cannabis continues to spread across the United States, certain technological advancements have emerged in the industry. One such advancement is the development of cannabis dispensing machines. While the concept of vending machines is not new, using them to sell a federally controlled substance such as marijuana does raise significant legal implications. Using these machines requires extensive legal compliance, adherence to strict packaging and labeling requirements, and ensuring that customers are of legal age. Additionally, specific regulations vary between states, making it essential for vending machine manufacturers to work closely with state regulators and cannabis businesses to ensure compliance. As the cannabis industry continues to evolve, the use of dispensing machines is likely to increase. As a result, it is crucial to address the legal implications to ensure the safe, compliant, and convenient sale of cannabis through this emerging technology. Check out our state-by-state analysis here.
Creative approaches to advertising your product without breaking the law
In today’s competitive market, finding creative ways to advertise your products is crucial. However, doing so is essential without breaking the law or putting your customers or business at risk. One approach is using “ACE” – an acronym for Automated Cannabis Experience – to create a customer experience that is positive, memorable, efficient, and effective.
Staying compliant with advertising laws and regulations is also crucial, as the consequences of noncompliance can be severe. That being said, taking smart risks can also be effective and can set your brand apart from the competition. With careful planning and execution, it is possible to advertise your products in innovative and engaging ways while staying within legal boundaries.
From this story, there are many lessons to be learned about the cannabis industry. Like, do it legally. This case study reminds us of the importance of understanding what the consumer wants in an experience with cannabis and dispensaries and how that can be used to create a successful business. ACE remains committed to staying ahead of the game and helping entrepreneurs throughout their journey, no matter the situation. If you would like more information or advice on how to start your own cannabis business, don’t hesitate to reach out to us! Get in touch with us today by contacting ACE – we look forward to hearing from you!